Why ESG Reporting is Essential for All Businesses
First published on The Daily Blaze, May 2021.
When companies are looking to invest in, merge with, acquire, or do business with other companies, transparency is paramount.
And for a good reason.
In the context of partnering and/or M&A considerations, transparency has traditionally been understood as a presentation and transference of data regarding financials. There is no question that this is a crucial requirement.
But transparency is now being adapted, enhanced, and contextualized to include ESG (Environmental, Social, and Governance) components. ESG reporting is becoming a new standard in corporate transparency.
So it behooves forward-thinking companies and the people that run them to take it seriously.
Let’s dive in to look at some more details below.
The Basics of ESG Reporting
To understand the importance of ESG Reporting, we need to look at why a company wants to have this information in the first place. We need to understand the value it adds to companies’ stakeholders.
The more transparent our partners and collaborators are, the more trust is built within that framework. That trust informs a lot. It affects how our personnel interacts with one another. It affects the level of risk we are willing to assume together or maybe even which clients we decide to approach or accept. To name a few.
A company transparent with its practices and data is a shining example to other companies that honesty and integrity are priorities. Having audit-ready ESG reporting can set you apart from the competition.
An ESG reporting strategy needs to be consistent, reliable, and comprehensive.
A company should feel its ESG reporting accurately and fairly represents its mission, values, and practices.
That’s where we come in.
Who Are We and Why You Should Care?
At Workiva (NYSE:WK), we are committed to providing industry-leading data compilation and management while linking it to accountability practices. We have helped customers from many industries transform the way they organize transparency.
The data compiled for ESG reporting can come from very disparate sources. These data sets can potentially be formulated based on inherently different measures.
For example, the way a company is looking to quantify its climate responsibility objectives for a given fiscal year will look very different from that same company’s way of providing a more qualitative measure of executive performances and board composition.
Workiva organizes this information flow for you. We will consider your company’s goals, capabilities, and any governmental requirements.
We will work with and for you to make this happen.
The Bottom Line
We could talk until we’re blue in the face giving you reasons why including ESG reporting moves in the right direction for your company and its stakeholders.
But as you are acutely aware, your company needs all programs and directives to generate healthy earnings. Those are always quantifiable.
We could continue to tell you how this reporting generates investor interest, but we would rather show you.
Your ESG reporting will become a hallmark of who you are as an enterprise and will serve as a framework for you and your stakeholders going forward.
Trust our commitment to making your company ESG-optimized, and we will do fantastic things together.
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